Fintech 2025

IRELAND Law and Practice Contributed by: Niall Esler, Shane Martin, James O’Doherty and Laura Whitson, Walkers

Individual Accountability Framework and the Senior Executive Accountability Regime (SEAR) The Central Bank (Individual Accountability Framework) Act 2023 (the “IAF Act” ) introduced, amongst other things, a requirement for persons in CF and PCF roles in regulated firms to take any steps reasonable in the circumstances to ensure that certain prescribed conduct stand - ards are met. Business standards will also be imposed on regulated firms in due course. The SEAR, which imposes additional require - ments on firms, will initially apply to a limited range of regulated firms from July 2024, includ - ing credit institutions, insurance undertakings and certain investment firms; certain require - ment under the SEAR will apply from July 2025. Fintech firms will generally not be in these cat - egories, but the SEAR will be applied to other sectors on a phased basis. 2.3 Compensation Models The permissible compensation models and dis - closure requirements will depend on the type of service firms provide, their customer base and regulatory status, and the rules applicable to those services or customer types. 2.4 Variations Between the Regulation of Fintech and Legacy Players As a general rule, there is no differentiation between services provided by fintech firms or legacy players but some regulated activities are more likely to be performed by fintech firms. 2.5 Regulatory Sandbox The Central Bank has recently established an Innovation Sandbox Programme to inform the early-stage development of selected innovative initiatives and provide regulatory advice and support to firms on their innovative projects. The

Innovation Sandbox Programme will take a the - matic approach, with the theme of the first pro - gramme being “Combatting Financial Crime” . The Sandbox Programme framework comprises workshops, ongoing bespoke engagement with dedicated Sandbox Relationship Managers, and access to data platforms. As part of the Digital Finance Package, the EU DLT pilot regime commenced in March 2023, creating a sandbox for successful applicant operators of market infrastructure to conduct the trading and settlement of DLT financial instru - ments. 2.6 Jurisdiction of Regulators The Central Bank is the financial services regula - tor in Ireland, with responsibility for the authori - sation and supervision of financial services providers. It supervises Irish firms from both a prudential and conduct of business perspective. For EEA passporting firms, the Central Bank will generally have a level of competence in relation to conduct of business requirements, rather than prudential requirements. The European Central Bank is the competent licensing authority for new Irish credit institu - tions (banks), and supervises significant credit institutions directly. The Data Protection Commission is the Irish supervisory authority for the GDPR. The Irish Digital Services Act 2024 (Irish DSA) designates Coimisiún na Meán as the desig - nated Digital Services Co-ordinator in Ireland, implementing and enforcing the Irish DSA in Ire - land. The Competition and Consumer Protection Commission is also designated for certain mat - ters relating to online marketplaces.

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